As cryptocurrency gains traction in Greece, particularly among individuals in their 30s, the absence of a tax framework is becoming increasingly problematic.
Both traders and the government face challenges because tax authorities must officially recognize cryptocurrencies. However, a committee has been tasked with creating a solution. It is expected to unveil new tax regulations by January 2025, which will classify crypto profits as capital gains and tax them at a 15% rate.
Definition and classification of Cryptocurrencies
The committee’s initial focus is defining and documenting all types of cryptocurrencies. They aim to establish a comprehensive list that specifies what qualifies as a cryptocurrency under the new regulations. This clarity is essential for investors and regulatory bodies to navigate the crypto space legally and effectively.
Following the classification, the next step involves detailing the taxation processes for these digital assets. The committee is working on guidelines outlining how cryptocurrencies should be taxed, which is anticipated to mirror the treatment of securities. This includes the taxation rates and the methods for reporting earnings and calculating tax liabilities.
Lastly, the committee is tasked with setting up mechanisms for monitoring and enforcing the new tax rules. Many Greek investors take advantage of the regulatory void to avoid declaring crypto earnings, often using these funds for living expenses while investing in real estate to maintain liquidity. The upcoming framework aims to close these loopholes and enhance compliance.
Transitional regulatory phase
certain temporary measures are in place as Greece prepares for the broader application of the EU’s Markets in Crypto-Assets Regulation (MiCA). Until December 30, crypto services will operate with minimal regulation, except for firms exchanging cryptocurrencies for fiat money or providing custodial services, which must register with the Hellenic Capital Market Commission (HCMC).
These companies can continue operating under existing registrations until July 1, 2026, after which full MiCA compliance will be required across the EU. During this transitional period, Greece has already implemented certain Anti-Money Laundering (AML) measures applicable to crypto service providers.
These include stringent customer due diligence, maintaining records of beneficial owners, and the mandatory appointment of an AML Compliance Officer. With the upcoming regulations, Greece aims to foster a more secure and regulated environment for cryptocurrency trading and investment, aligning with EU standards and ensuring that the financial activities within the crypto market are transparent and accountable.